Lakshmi Vilas Bank targets the NBFC arm of CitiGroup
South based private sector lender, Lakshmi Vilas Bank (LVB) is planning to acquire the non banking finance company, CitiFinancial Consumer Finance India owned by CitiGroup. The NBFC wing of Citi has been ailing since quite some time.
JM Financial has been hired by LVB to carry acomplia no prescription needed out due diligence of CitiFinancial. The balance sheet of CitiFinancial stands at Rs 9000 crore. It has 116 branches and near about 1,600 employees. Citi has also been trying to do away with its NBFC wing. It was recently in talks with Kotak Mahindra Bank to sell CitiFinancial. The deal did not materialize due to mismatch of opinions on the right price for the buyout.
CitiFinancial, like some of the other consumer finance firms, wants to get out of the low-income borrower segment. Many non-banking companies have burnt fingers due to a high loan delinquency level. But Citibank India does businesses like personal buy cialis soft loans, mortgage, loan against shares and properties, and it possibly makes a greater sense to give retail loans through the bank rather than the finance company.
It’s an interesting move for a conservative mid-sized bank which has stayed away from acquisitions
Source:[Rupee times]
Adequate funds on its way for MSME
Micro, Small and Medium Enterprises (MSMEs) will soon have access to adequate funds with the initiative taken by the central order cheap acomplia government to increase the credit availability to the sector. The Prime Minister’s task force on MSME has submitted its cialis generic brand report in January and has recommended an agenda for immediate action to cover all areas including credit, marketing, labour, technology, skill development and taxation
It is estimated that in terms of value, the MSME sector accounts for about 45 per cent of the manufacturing output and around 40 per cent of the total exports of the country. It employs an estimated 60 million people spread over 26 million registered and unregistered enterprises. There are 1.5 million registered units, out of which 95 per cent are micro enterprises and about 4.7 per cent are small enterprises.
The Finance Minister pointed out that there were a host of problems relating to registration and credit rating which needed to be sorted out before successful listing. But with the switch over to lending on the basis of base rate from July 1, their lending would be transparent and hopefully the small scale and medium size enterprises would get more banking funds at favourable rates.
The Small Industries Development Bank of India (SIDBI) is the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector. NABARD has also undertaken similar initiatives focusing on rural enterprises.
As a political entity, the government retains responsibility to create awareness in the small scale sector and MSMEs. They are not aware of the facilities available to them. They should, however, create an awareness campaign as the entire paradigm of development has changed and inclusive growth to participative growth.
Source:[The Hindu]
A new symbol for Indian Rupee, renewed Identity
Indian cabinet approved on Thursday a new symbol for the Indian rupee – a combination of the Devnagiri ‘Ra’ and the Roman capital cialis dosage 40 mg ‘R’. Designed by an Indian Institute of Technology (IIT) postgraduate D. Udaya Kumar, the symbol was selected from among five shortlisted symbols before the cabinet, Information and acomplia approval Broadcasting Minister Ambika Soni told reporters in New Delhi after the cabinet meeting. The symbol was selected following Finance Minister Pranab Mukherjee’s statement during the budget presentation in February, to formalise a symbol for the Indian rupee, reflecting the Indian ethos and culture.
With this, the rupee will join the select club of currencies, such as the US dollar, British pound sterling, euro and Japanese yen that have a clear distinguishing identity. ‘The new symbol will be used by all individuals and entities after its incorporation in `Unicode Standard’, ‘ISO/IEC 10646’ and ‘IS 13194’, said a statement from the government.
After encoding of the symbol in the Unicode Standard and National Standard, India’s IT companies lobby group NASSCOM will approach software development companies for incorporating the Rupee symbol in their operative software, as a new programme or as an update, to enable the computer users worldwide to use the symbol even if it is not embedded on the keyboards, said the Government statement. The encoding of the rupee symbol in the Indian Standards is estimated to take about six months while encoding in the Unicode and ISO/IEC 10646 will take about 18 months to two years.
Source:[ibti times,Financial Express]
India signs two agreements with WB
India has signed two agreements with the World Bank for loans totaling $ 407 million to scale up micro finance services in unbanked areas and to improve the capacity to generate quality statistics.
Loans amounting to $300 million will be provided acomplia cialis buy cialis online for sale for scaling up sustainable and responsible micro finance projects. The project will be implemented by the Small Industries Development Bank of India (SIDBI) over a period of five years. While $100 million is a credit from World Bank’s concessionary lending arm International Development Association, $200 million is a loan from the International Bank for Reconstruction and Development.
The India statistical strengthening project aimed at supporting statistical reforms in the country would be sanctioned $107 million as loan from the World Bank. The main focus areas include strengthening institutions of leadership and coordination of the national statistical system, and increasing the support provided by the Central government and the ministry of statistics and programme implementation (MoSPI) to the statistical systems of states and union territories. This should strengthen the capacity and performance of these statistical systems and improve the coverage, quality, timeliness and credibility of their statistics.
Source: [Economic Times India Times]
India’s electricity consumption to Double
Many factors, including rising demand from manufacturers and providing electricity to previously powerless villages, are set to contribute to doubling India’s electricity consumption by 2020. Investors in the power generation sector are bound to reap rich dividends.
The shortfall in power supply at peak hours will widen this year, and India will achieve only 79% of its planned expansion in power capacity by 2012, the government recently said. The power generation sector could see more than $78 billion in private investment in the next five years, says Crisil Research, but that doesn’t mean the power shortage is likely to fade anytime soon. India’s per capita electricity usage is the lowest in Asia, Macquarie Research says.
When it comes to the power companies, Tata Power is a standout. Its coal mines in Indonesia produce enough surplus—20 million tons a year—to ensure it can grow unfettered by supply problems, or rising coal prices. The company deserves credit for its experience in the sector, which makes it less likely it will bungle its expansion, and high governance standards. acomplia sale As the government still sets rates, political influence remains a risk. But tariffs are high enough that companies are profitable and New Delhi has lately been moving toward deregulation of its energy markets.
Source: [Online buy cialis generic Wsj]
Axis Bank to cover 5,500 villages
Axis Bank, the third-largest private bank of India, plans to cover 5,500 villages for financial inclusion by March 2011 and scale it up to 12,000 villages in five years’ time.
Financial inclusion is providing banking services at affordable costs to the weaker sections of society or the unbanked segment, which does not have any access to the formal banking system. The bank has kick-started its first initiative in financial inclusion in villages located near Nashik (in Maharashtra) and Darjeeling (in West Bengal). The bank is looking at financial inclusion in metro cities like Delhi, Chennai and Bangalore. Axis Bank is looking at opening 18-lakh simple accounts for people from weaker sections of the society with Rs 40 crore of deposits and Rs 10 crore of advances through its financial inclusion initiative. The 18-lakh account would include 12-lakh accounts that they have already opened for government-sponsored schemes.
SK Chakrabarti, executive director — retail banking, SME and Agri, said: “The way we are looking at financial inclusion is that we have been in the banking sector for 15 years and the time has come for us to give back to the society.” He further said the bank is looking at several low-cost delivery models such as smart card, mobile banking and point of transaction device. weight low cost cialis loss acomplia Axis Bank has also set up separate financial inclusion team. “The bank is also looking at providing banking service to the migrant workers located in the Delhi-Muzaffarpur area,” added Nilanjan Majumdar, V-P of the financial inclusion team. It may be recalled that RBI has asked all private and public sector banks to chart out a road map on financial inclusion.
Source: [Economic Times India Times]
RBI Research Report: Inflationary pressures will remain
“As a result of policy actions, the impact (of global crisis on India) was relatively short-lived and buying cialis without prescription from the second part of 2009 we have started to see increasing signs of recovery which have certainly been strongly consolidated in the early part of 2010,” said Subir Gokarn, RBI Deputy Governor while releasing the RBI research report on Currency acomplia for weight loss and Finance which focused on global financial crisis and the Indian economy.
Inflation for March touched a high of 11.04%, the highest so far in 2010, and has been hovering close to 10% since then. The recent decision to free up petrol prices and a hike in other state-subsidised fuel prices has added to further upward pressure on the price index. India’s food price inflation eased to its lowest annual growth in eight months. The inflationary pressures in the economy are however expected to continue as per the report. The report stated that monetary policy decisions should be sensitive to sources of inflation. “Thus, central banks need to adopt a more flexible approach and strengthen their capacity to provide liquidity and respond to systemic shocks,” the report said. It also said more co-ordination among finance ministries, central banks, and regulators is expected while developing exit strategies from the monetary and fiscal expansions that were undertaken to slacken the pace of the global economic slowdown.
With regards to the Global economic crisis the report suggests the need for a cautious approach to the pace and scope of capital account liberalization. The crisis it claims has taught the virtue of reserves and forex market intervention. The report added, “”The developments in Europe do suggest that some of the weaknesses related to the crisis are still remaining and we are clearly watching those developments in the context of our policy making as well.”
Source: [Money Control]
Home Loans surge
State Bank of India (SBI), India’s largest lender, is neck and neck with mortgage leader and pioneer HDFC in terms of home loans outstanding, according to data from Icra, the rating agency.
SBI is aiming to lead the market for home loans and expects the market to expand further. “We have a client base of more than 15 lakh individuals and we are aiming to add another 4 lakh this year,” said a top bank official. The special home loan scheme launched by SBI last year gave a boost to the loan growth in this segment. The scheme offers low fixed interest rates for initial years and floating rates thereafter.
Icra said SBI and HDFC enjoy same market acomplia online generic share of 17% as of March 2010 in the home loans segment. Along with ICICI Bank (including ICICI Home Finance), and LIC Housing Finance, they dominate the domestic mortgage market, accounting for 55% of housing credit in India as of March 31, 2010.
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Source: cialis purchase [DNA India]